-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FBSqzCC0+hff9EvBx9xUcP6Gd/lo6BKv72TJtMuNclg6P6UT/OPVnkY8ryUOBXgn +y8INdoC0hi9TnJz40b/6A== 0000950144-99-010110.txt : 19990816 0000950144-99-010110.hdr.sgml : 19990816 ACCESSION NUMBER: 0000950144-99-010110 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AARON RENTS INC CENTRAL INDEX KEY: 0000706688 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 580687630 STATE OF INCORPORATION: GA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-13941 FILM NUMBER: 99688100 BUSINESS ADDRESS: STREET 1: 3001 N FULTON DR NE STREET 2: 1100 AARON BLDG CITY: ATLANTA STATE: GA ZIP: 30363 BUSINESS PHONE: 4042310011 MAIL ADDRESS: STREET 1: 309 E. PACES FERRY ROAD., N.E. STREET 2: 3001 N FULTON DRIVE NE CITY: ATLANTA STATE: GA ZIP: 30305-2377 10-Q 1 AARON RENTS INC 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly Report under Section 13 or 15 (d) of the Securities Exchange Act of l934 JUNE 30, 1999 0-12385 - ------------- ------- For Quarter Ended Commission File No. AARON RENTS, INC. (Exact name of registrant as specified in its charter) GEORGIA 58-0687630 ------- ----------- (State or other jurisdiction of (I. R. S. Employer incorporation or organization) Identification No.) 309 E. PACES FERRY ROAD, N.E. ATLANTA, GEORGIA 30305-2377 ---------------- ---------- (Address of principal executive offices) (Zip Code) (404) 231-0011 -------------- (Registrant's telephone number, including area code) NOT APPLICABLE (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST REPORT) Indicate by check mark whether registrant (l) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Shares Outstanding as of Title of Each Class August 11, 1999 -------------------- --------------- Common Stock, $.50 Par Value 16,249,731 Class A Common Stock, $.50 Par Value 3,829,506 2 PART I - FINANCIAL INFORMATION Item 1 - Financial Statements AARON RENTS, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
(unaudited) June 30, December 31, 1999 1998 ----------- ----------- (in thousands) ASSETS: Cash $ 90 $ 95 Accounts Receivable 17,540 16,226 Rental Merchandise 296,043 277,505 Less: Accumulated Depreciation (91,154) (83,342) --------- --------- 204,889 194,163 Property, Plant and Equipment, Net 51,201 50,113 Prepaid Expenses and Other Assets 17,826 11,577 --------- --------- Total Assets $ 291,546 $ 272,174 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY: Accounts Payable and Accrued Expenses $ 38,538 $ 33,461 Dividends Payable 401 415 Deferred Income Taxes Payable 4,578 7,811 Customer Deposits and Advance Payments 10,495 9,889 Bank Debt 60,780 50,411 Other Debt 2,125 1,316 --------- --------- Total Liabilities 116,917 103,303 Commitments & Contingencies Shareholders' Equity: Common Stock, Par Value $.50 Per Share; Authorized: 25,000,000 Shares; Shares Issued: 18,270,987 9,135 9,135 Class A Common Stock, Par Value $.50 Per Share; Authorized: 25,000,000 Shares; Shares Issued: 5,361,761 2,681 2,681 Additional Paid-in-Capital 54,173 54,284 Retained Earnings 147,364 134,511 --------- --------- 213,353 200,611 Less: Treasury Shares at Cost, Common Stock, 2,015,756 Shares at June 30, 1999 and 1,558,991 Shares at December 31, 1998 (24,488) (17,604) Class A Common Stock, 1,532,255 Shares at June 30, 1999 and 1,525,255 shares at December 31, 1998 (14,236) (14,136) --------- --------- Total Shareholders' Equity 174,629 168,871 --------- --------- Total Liabilities & Shareholders' Equity $ 291,546 $ 272,174 ========= =========
See Notes to Consolidated Financial Statements 3 AARON RENTS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Three Months Ended Six Months Ended --------------------------- ------------------------ June 30, June 30, --------------------------- ------------------------ 1999 1998 1999 1998 --------------------------- ------------------------ (in thousands, except per share amounts) REVENUES: Rentals and Fees $ 79,980 $ 71,860 $157,241 $141,978 Retail Sales 14,617 15,213 31,080 31,517 Non-Retail Sales 10,334 4,604 18,305 9,207 Other 2,433 2,155 5,041 3,939 -------- -------- -------- -------- 107,364 93,832 211,667 186,641 -------- -------- -------- -------- COSTS AND EXPENSES: Retail Cost of Sales 10,360 10,738 22,218 22,225 Non-Retail Cost of Sales 9,617 4,287 16,979 8,563 Operating Expenses 50,202 47,133 98,923 93,340 Depreciation of Rental Merchandise 25,708 21,632 50,477 42,650 Interest 862 952 1,676 2,093 -------- -------- -------- -------- 96,749 84,742 190,273 168,871 -------- -------- -------- -------- EARNINGS BEFORE TAXES 10,615 9,090 21,394 17,770 INCOME TAXES 4,040 3,536 8,140 6,930 -------- -------- -------- -------- NET EARNINGS $ 6,575 $ 5,554 $ 13,254 $ 10,840 ======== ======== ======== ======== EARNINGS PER SHARE $ .33 $ .27 $ .66 $ .55 -------- -------- -------- -------- EARNINGS PER SHARE ASSUMING DILUTION $ .32 $ .27 $ .65 $ .54 -------- -------- -------- -------- CASH DIVIDENDS DECLARED PER SHARE Common Stock $ .02 $ .02 $ .02 $ .02 -------- -------- -------- -------- Class A Common Stock $ .02 $ .02 $ .02 $ .02 -------- -------- -------- -------- WEIGHTED AVERAGE SHARES OUTSTANDING 20,040 20,399 20,127 19,686 ======== ======== ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING ASSUMING DILUTION 20,445 20,873 20,439 20,167 ======== ======== ======== ========
See Notes to Consolidated Financial Statements 4 AARON RENTS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended -------------------------- June 30, -------------------------- 1999 1998 ---------- --------- (in thousands) OPERATING ACTIVITIES Net Earnings $ 13,254 $ 10,840 Depreciation and Amortization 56,220 46,845 Deferred Income Taxes (3,233) 988 Change in Accounts Payable and Accrued Expenses 5,077 (2,632) Change in Accounts Receivable (1,314) (4,128) Other Changes, Net (2,394) (2,108) -------- --------- Cash Provided by Operating Activities 67,610 49,805 -------- --------- INVESTING ACTIVITIES Additions to Property, Plant and Equipment (11,392) (15,850) Book Value of Property Retired or Sold 5,812 6,026 Additions to Rental Equipment (99,445) (93,737) Book Value of Rental Equipment Sold 42,495 37,666 Contracts and Other Assets Acquired (9,610) (1,312) -------- --------- Cash Used by Investing Activities (72,140) (67,207) -------- --------- FINANCING ACTIVITIES Proceeds from Revolving Credit Agreement 91,571 76,166 Repayments on Revolving Credit Agreement (81,202) (101,190) Proceeds from Common Stock Offering 39,958 Increase in Other Debt 809 2,385 Dividends Paid (415) (379) Acquisition of Treasury Stock (9,437) Issuance of Stock Under Stock Option Plans 3,199 465 -------- --------- Cash Provided by Financing Activities 4,525 17,405 -------- --------- (Decrease) Increase in Cash (5) 3 Cash at Beginning of Year 95 96 -------- --------- Cash at End of Period $ 90 $ 99 ======== =========
See Notes to Consolidated Financial Statements 5 AARON RENTS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE A: PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Aaron Rents, Inc. ("the Company") and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated. The Consolidated Balance Sheet as of June 30, 1999, and the Consolidated Statements of Earnings and Cash Flows for the six months ended June 30, 1999 and 1998, have been prepared without audit. In the opinion of management, all adjustments necessary to present fairly the financial position, results of operations and cash flows at June 30, 1999 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 1998. The results of operations for the period ended June 30, 1999 are not necessarily indicative of the operating results for the full year. NOTE B: COMPREHENSIVE INCOME There were no differences between net income and comprehensive income for the quarter or six month periods ended June 30, 1999 and 1998. NOTE C: SEGMENT INFORMATION
Three Months Ended Six Months Ended June 30 June 30 ------- --------- 1999 1998 1999 1998 --------------------------------------------------------- (in thousands) REVENUES FROM EXTERNAL CUSTOMERS: Rent-to-Rent $ 43,483 $ 43,077 $ 88,252 $ 86,978 Rental Purchase 61,322 46,835 119,428 93,376 Franchise 1,946 1,786 4,034 3,171 Other (201) 1,831 (250) 3,419 Manufacturing 14,901 13,058 29,244 26,113 Elimination of intersegment revenues (14,726) (12,937) (29,022) (26,024) Cash to accrual adjustments 639 182 (19) (392) -------------------------------------------------------- Total revenues from external customers $ 107,364 $ 93,832 $ 211,667 $ 186,641 ======================================================== EARNINGS BEFORE INCOME TAXES: Rent-to-Rent $ 3,919 $ 4,642 $ 9,388 $ 10,654 Rental Purchase 5,353 2,153 10,611 5,893 Franchise 995 880 2,220 1,405 Other 66 (770) (565) (1,102) Manufacturing 420 115 472 669 ------------------------------------------------------- Earnings before income taxes for reportable segments 10,753 7,020 22,126 17,519 Elimination of intersegment profit (337) (109) (288) (659) Cash to accrual adjustments 569 515 (133) (255) Other allocations and adjustments (370) 1,664 (311) 1,165 -------------------------------------------------------- Total earnings before income taxes $ 10,615 $ 9,090 $ 21,394 $ 17,770 ========================================================
6 PART I - FINANCIAL INFORMATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Special Note Regarding Forward-Looking Information: Except for historical information contained herein, the matters set forth in this Form 10-Q are forward-looking statements. The Company notes that the forward-looking statements set forth involve a number of risks and uncertainties that could cause actual results to differ materially from any such statements, including the risks and uncertainties discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 1998, filed with the Securities and Exchange Commission, under the caption "Certain Factors Affecting Forward Looking Statements," which discussion is incorporated herein by this reference. RESULTS OF OPERATIONS: QUARTER ENDED JUNE 30, 1999 VERSUS QUARTER ENDED JUNE 30, 1998: Total revenues for the second quarter of 1999 increased $13.5 million (14.4%) to $107.4 million compared to $93.8 million in 1998 due primarily to a $8.1 million (11.3%) increase in rentals and fees revenues, plus a $5.1 million (25.9%) increase in sales. Of this increase in rentals and fees revenues, $9.3 million was attributable to the Aaron's Rental Purchase division. Rentals and fees revenues from the Company's rent-to-rent operations increased $700,000, excluding $1.9 million of rental and fees from the Company's convention furnishings division, which was sold in the fourth quarter of 1998. Revenues from retail sales decreased $596,000 (3.9%) to $14.6 million in 1999, from $15.2 million for the same period last year. This decrease was primarily due to decreased sales of new merchandise in the Company's rent-to-rent operations. Non-retail sales, which primarily represent merchandise sold to Aaron's Rental Purchase franchisees, increased $5.7 million (124.5%) to $10.3 million compared to $4.6 million for the same period last year. The increased sales are due to the growth of the franchise operations. Other revenues for the second quarter 1999 increased $278,000 (12.9%) to $2.4 million compared to $2.2 million in 1998. This increase was attributable to fees and royalties from franchise operations increasing $156,000 (10.4%) to $1.7 million compared to $1.5 million last year, reflecting the addition of 17 franchised stores since the end of the second quarter of 1998 and increasing operating revenues at maturing franchise stores. Cost of sales from retail sales decreased $378,000 (3.5%) to $10.4 million compared to $10.7 million last year, and as a percentage of retail sales, increased slightly to 70.9% from 70.6%. Cost of sales from non-retail sales increased $5.3 million (124.3%) to $9.6 million from $4.3 million, and as a percentage of sales, remained unchanged at 93.1%. Operating expenses increased $3.1 million (6.5%) to $50.2 million from $47.1 million. As a percentage of total revenues, operating expenses were 46.8% in 1999 and 50.2% in 1998. Operating expenses decreased as a percentage of total revenues between quarters primarily due to increased revenues in the Aaron's Rental Purchase division and the sale of the Company's convention furnishings business which had higher operating expenses than traditional rent-to-rent and rental purchase operations. 7 Depreciation of rental merchandise increased $4.1 million (18.8%) to $25.7 million, from $21.6 million, and as a percentage of total rentals and fees, increased to 32.1% from 30.1%. This increase is primarily due to a greater percentage of the Company's rentals and fees coming from the Aaron's Rental Purchase division, which depreciates its rental merchandise at a faster rate than the Rent-to-Rent division. Interest expense decreased $90,000 (9.5%) to $862,000 compared to $952,000. As a percentage of total revenues, interest expense was 0.8% in 1999 compared to 1.0% in 1998. The decrease in interest expense as a percentage of total revenues was due to lower interest rates in the second quarter of 1999 as well as lower debt levels after the April 1998 stock offering. Income tax expense increased $504,000 (14.3%) to $4.0 million for 1999 compared to $3.5 million for the same period in 1998. The Company's effective tax rate was 38.1% for the second quarter of 1999 compared to 38.9% for the same period last year, primarily due to lower state income tax rates. As a result, net earnings increased $1.0 million (18.4%) to $6.6 million in the second quarter of 1999 compared to $5.6 million for the same period in 1998. As a percentage of total revenues, net earnings were 6.1% in the current quarter as compared to 5.9% for the same period last year. The weighted average number of shares outstanding during the second quarter of 1999 was 20,040,000 compared to 20,399,000 (20,445,000 versus 20,873,000 assuming dilution) for the same period last year. SIX MONTHS ENDED JUNE 30, 1999 VERSUS SIX MONTHS ENDED JUNE 30, 1998: Total revenues for the first six months of 1999 increased $25.0 million (13.4%) to $211.7 million compared to $186.6 million in 1998 due primarily to a $15.3 million (10.8%) increase in rentals and fees revenues, plus a $8.7 million (21.3%) increase in sales. Of this increase in rentals and fees revenues, $17.7 million (22.0%) was attributable to the Aaron's Rental Purchase division. Rentals and fees from the Company's rent-to-rent operations increased $1.0 million excluding $3.4 million of rental and fees from the Company's convention furnishings division, which was sold in the fourth quarter of 1998. Revenues from retail sales decreased $437,000 (1.4%) to $31.1 million in 1999, from $31.5 million for the same period last year. This decrease was due to decreased new sales in the Rent-to-Rent division. Non-retail sales, which primarily represent merchandise sold to Aaron's Rental Purchase franchisees, increased $9.1 million (98.8%) to $18.3 million compared to $9.2 million for the same period last year. The increased sales are due to the growth of the franchise operations. Other revenues for the six months of 1999 increased $1.1 million (28.0%) to $5.0 million compared to $3.9 million in 1998. This increase was primarily attributable to franchise fee and royalty income increasing $754,000 (27.9%) to $3.4 million compared to $2.7 million last year, reflecting a net increase of 17 franchised stores since the end of the second quarter of 1998 and increased operating revenues of maturing franchise stores. Cost of sales from retail sales decreased $7,000 (0%) remaining at $22.2 million during both periods, and as a percentage of retail sales, increased to 71.5% from 70.5%. The increase in cost of sales as a percentage of sales is due to lower margins from rental return sales in the Rent-to- 8 Rent division. Cost of sales from non-retail sales increased $8.4 million (98.3%) to $17.0 million from $8.6 million, and as a percentage of sales, decreased slightly to 92.8% from 93.0%. Operating expenses increased $5.6 million (6.0%) to $98.9 million from $93.3 million. As a percentage of total revenues, operating expenses were 46.7% in 1999 and 50.0% in 1998. Operating expenses decreased as a percentage of total revenues between periods primarily due to the Company's acquisitions of RentMart Rent-To-Own, Inc. and Blackhawk Convention Services in December 1997. The RentMart stores were relatively immature and had lower revenues over which to spread expenses and Blackhawk's convention furnishings business had higher operating expenses as a percentage of revenues than traditional rental purchase and rent-to-rent operations. The RentMart stores are now more mature and have more revenue over which to spread expenses and the convention furnishings business was sold in the fourth quarter of 1998. Depreciation of rental merchandise increased $7.8 million (18.4%) to $50.5 million, from $42.7 million, and as a percentage of total rentals and fees, increased to 32.1% from 30.0%. This increase is primarily due to a greater percentage of the Company's rentals and fees coming from the Aaron's Rental Purchase division which depreciates its rental merchandise at a faster rate than the Rent-to-Rent division. Interest expense decreased $417,000 (19.9%) to $1.7 million compared to $2.1 million. As a percentage of total revenues, interest expense was 0.8% in 1999 compared to 1.1% in 1998. The decrease in interest expense as a percentage of revenues was due to lower debt levels after the Company's April 1998 public stock offering and lower interest rates. Income tax expense increased $1.2 million (17.5%) to $8.1 million for 1999 compared to $6.9 million for the same period in 1998. The Company's effective tax rate was 38.0% for the first six months of 1999 versus 39.0% for the same period in 1998, primarily due to lower state income tax rates. As a result, net earnings increased $2.4 million (22.3%) to $13.3 million for the first six months of 1999 compared to $10.8 million for the same period in 1998. As a percentage of total revenues, net earnings were 6.3% in the first six months compared to 5.8% for the same period last year. The weighted average number of shares outstanding during the first six months of 1999 was 20,127,000 compared to 19,686,000 (20,439,000 versus 20,167,000 assuming dilution) for the same period last year. LIQUIDITY AND CAPITAL RESOURCES: During the first six months of 1999, the Company paid a semi-annual dividend that was declared in December 1998 of $.02 per share on both Common Stock and Class A Common Stock respectively. On May 4, 1999, the Company declared a semi-annual dividend payable on July 6, 1999 of $.02 per share on both Common Stock and Class A Common Stock. Cash flow from operations for the six months ended June 30, 1999 and 1998 was $67.6 million and $49.8 million, respectively. Such cash flows include profits on the sale of rental return merchandise. The Company's primary capital requirements consist of acquiring rental merchandise for both rent-to-rent and Company-operated Aaron's Rental Purchase stores. As the Company continues to grow, the need for additional rental merchandise will continue to be the Company's major capital requirement. These capital requirements historically have been 9 financed through a revolving credit agreement, cash flow from operations, trade credit, proceeds from the sale of rental return merchandise, and stock offerings. The revolving credit agreement provides for unsecured borrowings up to $90.0 million which includes a $6.0 million credit line to fund daily working capital requirements. At June 30, 1999, an aggregate of $60.8 million was outstanding under this facility, bearing interest at an average rate of 5.57%. The Company uses interest rate swap agreements as part of its overall long-term financing program. At June 30, 1999, the Company had swap agreements with notional principal amounts of $40.0 million which effectively fixed the interest rates on an equal amount under the Company's revolving credit agreement at 6.93%. The Company believes that the expected cash flows from operations, proceeds from the sale of rental return merchandise, bank borrowings and vendor credit, will be sufficient to fund the Company's capital and liquidity needs for at least the next 24 months. YEAR 2000 The Year 2000 Issue is the result of computer programs being written using two digits rather than four to define the applicable year. Any of the Company's computer programs or hardware that have date-sensitive software or embedded chips may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including, among other things, a temporary inability to process transactions, generate invoices, or engage in similar normal business activities. The Company is continuing its assessments of the impact of the Year 2000 across its business and operations, including its customer and vendor base. The Company has substantially completed its identification of information technology systems ("IT systems") that are not Year 2000 compliant and is in the process of implementing a comprehensive plan to make its IT systems and non-information technology systems ("non-IT systems"), including embedded electronic circuits in equipment and hardware, products, telecommunication, building security and manufacturing equipment, Year 2000 compliant. The Company's plan to resolve the Year 2000 Issue involves the following four phases: (1) assessment, (2) remediation, (3) testing, and (4) implementation. The Company is simultaneously working on all four phases and has substantially completed phase (1) and anticipates that it will substantially complete phase (2) and (3) by the end of the third quarter 1999, and (4) by the end of the fourth quarter 1999. The Company is in the process of querying its significant suppliers and subcontractors (external agents). To date, the Company is not aware of any external agents with a Year 2000 issue that would materially impact the Company's results of operations, liquidity, or capital resources. However, the Company has no means of ensuring that external agents will be Year 2000 compliant. The inability of external agents to complete their Year 2000 resolution process in a timely fashion could materially impact the Company. The effect of non-compliance by external agents is not determinable. The Company's significant IT systems, including financial, accounting, store operating and point-of-sale software, have recently been or are in the process of being updated. The upgrading and rewriting of the Company's IT systems is being completed to gain further strategic advantages over competitors and is not the result of any anticipated Year 2000 issues. In addition, as part of the Company's continuing process to update IT and non-IT systems, management has required vendor-purchased and internally developed systems be Year 2000 compliant. Therefore, management expects the cost of the Year 2000 project to be less than $300,000. 10 The Company has contingency plans for certain critical applications and is working on such plans for others. These contingency plans involve, among other actions, manual workarounds, and backup vendors. Management of the Company believes it has an effective program in place to resolve the Year 2000 issue in a timely manner. As noted above, the Company has not yet completed all necessary phases of the Year 2000 program. In the event that the Company does not complete any additional phases, the Company may be unable to take customer orders, manufacture and ship products, invoice customers or collect payments. In addition, disruptions in the economy generally resulting from Year 2000 issues could also materially adversely affect the Company. The Company could be subject to litigation for computer systems product failure, for example, equipment shutdown or failure to properly date business records. The amount of potential liability and lost revenue cannot be reasonably estimated at this time. See "Special Note Regarding Forward-Looking Information". 11 PART II - OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Annual Meeting of Shareholders was held on May 4, 1999 in Atlanta, Georgia, at which the following matter was submitted to a vote of the shareholders: Votes cast for or withheld regarding the election of ten (10) Directors for a term of one (1) year were as follows:
Name of Nominee For Withheld - --------------- --------- -------- R.C. Loudermilk, Sr. 3,551,001 225 Gilbert L. Danielson 3,551,001 225 Keith C. Groen 3,551,001 225 Earl Dolive 3,551,001 225 Robert C. Loudermilk, Jr. 3,551,101 125 Ronald W. Allen 3,551,001 225 Leo Benatar 3,551,001 225 Ingrid Sanders Jones 3,551,001 225 J. Rex Fuqua 3,551,001 225 M. Collier Ross 3,551,001 225
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K: (a) The following exhibits are furnished herewith:
Exhibit Number Description of Exhibit ------- ---------------------- 27 Financial Data Schedule (for SEC use only)
(b) No reports on Form 8-K were filed by the Registrant during the six months ended June 30, 1999. 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of l934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AARON RENTS, INC. (Registrant) Date - August 13, 1999 /s/ GILBERT L. DANIELSON --------------- --------------------------- Gilbert L. Danielson Executive Vice President Chief Financial Officer Date - August 13, 1999 /s/ ROBERT P. SINCLAIR, JR. --------------- --------------------------- Robert P. Sinclair, Jr. Vice President Corporate Controller EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF AARON RENTS FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS DEC-31-1999 JAN-01-1999 JUN-30-1999 90 0 17,540 0 204,889 0 51,201 0 291,546 0 0 0 0 11,816 162,813 291,546 49,385 211,667 39,197 188,597 0 0 1,676 21,394 8,140 13,254 0 0 0 13,254 .66 .65 The allowance of doubtful accounts is netted against total accounts receivable in the Accounts Receivable balance. Rental merchandise has been classified as inventory for purposes of this schedule. Rental merchandise has been shown net of 91,154 accumulated depreciation. The financial statements are presented with an unclassified balance sheet. PP&E has been shown net of accumulated depreciation.
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